Theranos: Scandal hit blood-testing firm to shut

Scandal-hit US blood-testing start-up Theranos is to formally dissolve, the firm’s chief executive David Taylor has told shareholders in an email. Mr Taylor said Theranos had run “out of time” to secure further investment or secure a buyer for its assets. Theranos founder Elizabeth Holmes and former president Ramesh Balwani are facing criminal charges of wire fraud. Prosecutors say they engaged in a multi-million dollar scheme to defraud investors, doctors and patients. Mr Taylor, who also serves as general counsel to the firm, said that Theranos had engaged the services of investment bank Jeffries to try to “maximise the value of the company” for shareholders. In the email obtained by the Wall Street Journal, he said the investment bank had “reached out” to over 80 potential buyers, but to no avail. “Unfortunately, none of those leads has materialized into a transaction. We are now out of time,” he wrote. Mr Taylor said the firm had breached the terms of its loan agreement with investor Fortress Investment Group, meaning the firm was now entitled to sell or take ownership of Theranos’ intellectual property and assets. Shareholders are expected to receive nothing after the firm’s collapse.
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